Urban water supply sector risk assessment

This sector guidance note seeks to increase awareness of risks that can reduce the benefits from operations in the urban water supply sector. It is meant for Asian Development Bank (ADB) staff involved in commissioning and/or undertaking governance risk assessments as required under ADB’s Second Governance and Anticorruption Action Plan (GACAP II). Risk, in the context of GACAP II, refers to the risk of reduced development effectiveness—that the development objectives of developing member countries (DMCs) and ADB will not be met, or will be adversely affected by poor governance, weakly performing institutions, or vulnerability to corruption.2 This guidance note aims to explain key sector features of urban water supply and identify entry points for mapping risks to development effectiveness in the sector. Generic risks are presented for illustrative purposes, and are not intended to be exhaustive. [authors abstract]